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Munze Munze
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6 years ago
Suppose the yield curve is initially horizontal. Suppose the current one-year interest rate increases by 4% while the expected future one-year interest rate does not change. Which of the following will tend to occur?
A) i2t will increase by 4%
B) i2t will increase by 2%
C) i2t will increase by less than 2%
D) i2t will decrease by 2%
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Macroeconomics

Macroeconomics


Edition: 6th
Authors:
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Macroeconomics, 6/E (Blanchard, Johnson)
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vonCOLLINZOvonCOLLINZO
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Munze Author
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5 years ago
Thanks so much Slight Smile I'll post more questions
Macroeconomics, 6/E (Blanchard, Johnson)
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